When Amazon announced a deal to acquire Eero, the maker of a
groundbreaking WiFi system, it sounded like a classic Silicon
Valley success story: a promising startup is acquired by the
biggest bidder in the land, and everyone rolls around in cash. But
that is not this story. This story is about investors losing tens
of millions of dollars and dozens of employees left with
According to confidential documents viewed by Mashable, Amazon
acquired Eero for $97 million. Eero executives brought home
multi-million dollar bonuses and eight-figure salary increases.
Everyone else, however, didn’t fare quite so well. Investors took
major hits, and the Amazon acquisition rendered Eero stock
worthless: $0.03 per share, down from a common stock high of $3.54
in July 2017. It typically would have cost around $3 for employees
to exercise their stock, meaning they would actually lose money if
they tried to cash out.
Such a great product, but home networking is a brutal market to crack.